A study on strategies practices in RMG industry in Bangladesh

Topics: Strategy, Industry, Sustainability Pages: 6 (375 words) Published: August 3, 2015
A study on strategies practices in RMG
industry in Bangladesh
Presented By
Muhammad Zahid Hasan
ID: 1404053
Ev.MBA-4

Introduction
The industrial sector is dominated by
RMG industry in Bangladesh, an export
oriented industry, and it is well-known as
goose that lays the golden eggs for over
thirty years. This RMG industrial sector
now-a-days
dominates
the
modern
economy
in
export
earnings
and
employment generation. The RMG sector‘s
contributions to the country‘s export
earnings are around 77%.

Objectives
General Objective: To familiar with different

types of strategies used in RMG industry in
Bangladesh.
Specific Objective: Analysis the particular
strategic fit for the organization.

Strategy Analysis
 Low-cost provider strategy

The company’s strategic target is meaningfully lower costs than rivals but not necessarily the absolute lowest possible cost
 Sustainability

RMG factories engage in sustainable business because it intends to serve and prevail in the long run.
 Adaptability

With time, the needs of stakeholders, environment and the people change and so the group evolves to cope up with the change; keeping the Vision, Mission and Values intact.
 Human Capital Management

considering human resources as its greatest assets and so it strives to preserve, nurture and develop the people to perform at their fullest potential.  Diversification

focusing on diversification as much as it values the core business because it believes that continuous improvement comes with continuous efforts to grow

Findings
Overall RMG Industries follow a common frame of

strategy but their vision, mission, goals may be
different.
Competitive pricing is the unique revenue
strategy
Unique competitive advantage on cost of labor
There is a similarity are mostly activism in
marketing and selling, availability of local raw
materials, delivery reliability, and level of
backward linkage.
There is a lack of safety measures in their
strategy

Recommendations
Infrastructure Development: Utilities, road networks,

and port facilities are seen as major limiting factors.
Compliance: Situation has improved over the last few
years; however, significant continued efforts required.
Supplier performance and workforce supply: Labor
costs are expected to increase; in addition,
skill/capability/capacity gap needs to be closed
Raw
materials: Dependency on imports are
considered a major source of risk regarding lead times
Economy and political stability: Risk of political
instability threatens sourcing activities
Proper safety measures should be taken

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